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India to accept $300 million in help from World Bank for Electric Vehicle thrust

The World Bank has announced that it has devoted to present India with funds worth $300 million to assist its energy efficiency programme. The move will facilitate the government set up the essential infrastructure to push forward its objective of escalating electric mobility in the country.

In a gathering held in December 2018, the Ministry of New and Renewable Energy (MNRE) informed the Committee of Secretaries that the World Bank would course the support to India through Energy Efficiency Services Ltd (EESL).

The proposal was declared at a gathering attended by officials including cabinet secretary PK Sinha, NITI Aayog CEO Amitabh Kant, Secretary of the Ministry of Environment, Forest and Climate Change CK Mishra, and the Secretary the of Department of Heavy Industries AR Singh, amid others.

The help received from the World Bank will complement the funds that the Centre proposes to raise by imposing a one-time fee from conventional fuel based vehicle purchasers in a proposal to provide financial support to the e-mobility programme.

“The MNRE proposed during the meeting to charge a nominal (one-time) fee of around Rs 500 from two-wheeler buyers, Rs 1,000 from three-wheeler buyers and Rs 12,000 from four-wheeler buyers, to generate an extra-budgetary fund of Rs 7,500 crore per annum,” a source said.

Apart from this, the meeting of Committee of Secretaries also resolute to cut the existing tax rate on the raw material requisite for the manufacture of electric vehicles.

“The Department of Revenue (Finance Ministry) has been asked to mull over lowering the tax rate and duties on raw material required for manufacturing of electric vehicles,” said another source aware of the matter.